Mortgage rates are falling [FLe713doC09]
Mortgage rates are finally moving lower. Just a few weeks ago, markets were pricing in higher inflation, higher energy costs and higher borrowing costs after the Iran conflict pushed oil prices higher. Today the picture looks very different. • Oil prices have fallen back close to pre-war levels. • Inflation expectations have eased. • UK gilt yields have stabilised. • The 10-year gilt is sitting around 4.79%, little changed since the US-Iran peace deal and Keir Starmer’s resignation. • Markets appear comfortable with Andy Burnham emerging as the favourite to become the next Prime Minister. The result? Lenders are starting to cut rates. In the past month : • Home mover rates have fallen from 4.54% to 4.34%. • First-time buyer rates have fallen from 4.61% to 4.34%. • Remortgage rates have fallen from 4.68% to 4.52%. • Buy-to-let rates have fallen from 5.04% to 4.84%. But not everyone is benefiting. Borrowers with smaller deposits and those stretching affordability are still facing rates above 5%, with some products becoming more expensive despite falling gilt yields. The mortgage market is sending a clear message: Lower inflation and lower energy prices are helping. But lenders still see greater risk in higher-LTV and affordability-stretched borrowers. If oil remains subdued and gilt yields stay around current levels, the pressure for further mortgage rate cuts will continue to build through the second half of 2026. Would you fix now at 4.3%-4.5% or wait for rates to fall further? Follow @hassanomics #uk #investment #property #money #wealth